I am trying to save for my daughters education. Right now she is 10 years old and she will be attending school when she is18. Currently I have $90,000 to invest and I will not be able to contribute anymore through out that time. I estimate that shewill need $25000 a year for dormitory costs at an average BC post secondary institution, her costs per semester for schooland books will be $10000 and she will have food costs of about $10000 a year. I want to save for a 4 year post secondaryprogram. Using the rule of 70, calculate the average growth rate I would need over that time period to have enough for herto go to school. The average growth rate needs to be 8.75percent.***Round your answer to the nearest 2 decimal places***

The rule of 70 determines the approximate time taken for an amount to double given the interest rate…

Answered: The average growth rate needs to be…

Business

Finance

The average growth rate needs to be 8.75 percent.

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter5: Managing Checking And Savings Accounts

Section: Chapter Questions

Problem 2FPC

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